After a long period of speculation about when Coinbase would finally go public with its public listing, the US-based cryptocurrency exchange posted a blog post earlier this month stating that it had signed up with Securities and Exchange Commission registered to hold a direct stake listing on the Nasdaq on April 14th.
In this regard, Coinbase’s Class A common stock is expected to trade on the Nasdaq Global Select Market under the ticker symbol “COIN”. However, the cryptocurrency exchange had previously considered a listing in March after it signed a $ 6.5 million settlement with the U.S. Commodities and Futures Trading Commission last month and had to delay its plans.
Coinbase executives had already filed a draft registration with the SEC in December 2020. However, due to certain issues, the exchange announced it would go direct listing on Nasdaq in early 2021. It has been estimated that Coinbase is valued at around $ 100 billion at the time of listing.
Will Coinbase’s listing leave an indelible mark on the crypto market?
Since its launch almost a decade ago in 2012, Coinbase has grown into one of the largest cryptocurrency exchange platforms in the world. Coinbase Pro itself manages a daily transaction volume of more than $ 3 billion.
Alex Mashinsky, CEO and founder of cryptocurrency income platform Celcius, believes the Coinbase listing can be seen as further validation of the technological and monetary offerings in the space as well as a major PR opportunity for the entire industry, said Cointelegraph:
“Coinbase has more users, generates more revenue than many of Wall Street’s biggest players, and is more profitable than any major exchange. This validation puts most skeptics at a crossroads where they have to reassess their disapproval and frustration with the disruption they are facing from all sides. “
Maren Altman, blogger and analyst at Quantum Economics, believes Coinbase’s listing will invite many traditional investors who may have felt uncomfortable buying cryptocurrencies but can still take advantage of some of the benefits of the emerging space. In their view, the move will likely increase confidence in “exchange tokens” or coins that are directly linked to exchanges, such as FTX’s FTT or Binance Coin (BNB).
Norman Wooding, founder and CEO of crypto asset management company Scrypt, told Cointelegraph that Coinbase’s listing can be seen as a major milestone that will bring more validation and trust to the crypto ecosystem from investors and regulators – especially in the US – Will motivate to work more in collaboration with crypto companies.
In his view, there is no company like Coinbase, especially when you factor in the company’s size, valuation, and earning capacity. Pointing out that the cryptocurrency exchange’s latest Q1 report is of paramount importance as it includes the names of certain institutions that hold their assets with Coinbase, Wooding added:
“This can be seen as a vote of confidence in other players who have been reluctant to enter the scene. It will entice others to follow suit in adopting and offering digital asset services, as we saw recently from BNY Mellon, Goldman Sachs, and State Street. “
While it cannot be denied that Coinbase’s direct listing will bring mainstream attention to the crypto sector, Kosala Hemachandra, founder and CEO of MyEtherWallet, told Cointelegraph that he was curious about where the company will go from now on. “Can they pave the way for Coinbase shares to actually be traded on Ethereum? I think this is the way to prove how powerful blockchain can be, ”he added.
Similarly, Brad Kam, co-founder of Unstoppable Domains – a San Francisco-based company that builds domains on top of blockchains – added that platforms like Coinbase need to ensure this, as the adoption of mainstream crypto continues at an accelerating pace – they have the right ones Tools to make access easy and intuitive for everyone. They added, “Millions of funds have been lost by typing errors in difficult-to-read wallet addresses or simply sending the wrong coin to the wrong wallet.”
Wooding believes it will be interesting to see how Coinbase’s future quarterly reports compare, especially during bear markets and in the face of increased competition. However, he believes that any pessimism in this regard is significantly outweighed by the increasing adoption and institutionalization of digital assets.
After all, he believes the real test of time will be for Coinbase to view the company’s development as a centralized exchange, especially given the increasing demand for decentralized financial products.
Will other exchanges follow? Most likely
With news of Coinbase’s listing gaining traction, many believe that other exchanges are most likely to follow suit. In that regard, California-based digital asset trading platform Kraken announced that while the company is unsure of when it will go public, it will go through a direct listing rather than the route of a specific acquisition firm.
Expressing his views on the matter, Kam pointed out that other exchanges are already joining the trend, alluding to the trading platform eToro which recently announced it will go public via a SPAC merger, adding: “Kraken is discussing going public in 2022. I’m sure many other crypto firms are quietly doing their homework to weigh the pros and cons. “
Connected: Would you like to buy Coinbase shares now? Here’s how to get an exposure before April 14th
Altman, on the other hand, believes that Coinbase’s listing will not only result in major crypto exchanges going public in the near future, but will also allow other companies in the space to look into such options, and adds Add: Exchanges and Bitcoin ETF filings show how crypto will stay here. “
Finally, Nisa Amolis, managing partner of venture capital investment firm A100x, believes that more exchanges will definitely follow Coinbase’s decision mentioned above, underscoring the fact that FTX’s PR team recently also posted on Twitter the estimated numbers and trading volume of the exchange announced. She continued:
“Coinbase more than doubled its monthly transaction users in the last quarter. Not only that, they are now around $ 100 per month / user when it was recently at $ 34. They are licensed in 30 countries and more than half of their volume and 70% of sales already come from institutions. They have an 11% share of the crypto market. “
Given that so many digital asset exchanges have done exceptionally well in recent years, it stands to reason that it is only a matter of time before more and more crypto firms go public.